Financial Economics (L1095)
15 credits, Level 6
Spring teaching
You are given an advanced perspective on the microeconomic principles underlying financial markets and financial decision-making.
You learn key concepts including:
- risk and return
- asset pricing
- asset allocation
- portfolio optimisation
- financial market equilibrium
- efficient market hypothesis.
You also look at arbitrage pricing and pricing of options and futures, and how these can be used to understand investment decisions, and trends in financial markets.
You must have knowledge of microeconomics, basic calculus, and statistics - and be familiar with using spreadsheet packages such as Microsoft Excel. This is for solving problem sets and developing your analytical techniques in valuation and portfolio optimisation.